Australian Banks Offer 6.5%

purch

They are offering 6.5%

Yes for AUD.

Not for GBP.

That is the 'potential' pitfall.

purch

At the end of the day, there's no point sweating about stuff you can't change

Might as well shut this bloody forum down :eek:

bendix

ERICS_MUM wrote: »

As well as the exchange rate question, you might want to consider some of the following:

Are Australian banks covered by a deposit protection scheme similar to the UK's Financial Services Compensation Scheme run by the FSA ?

Are you looking at one of the nationwide banks (NAB, ANZ, Commonwealth Bank) or a smaller regional bank ?

Does the Australia bank or Financial Services regulation body impose any max or min balances, limits, money laundering checks, deduction of tax from interest on foreign deposits? Would you also have to declare the interest to HMRC and pay UK tax on it ?

Would you have instant access to your money, is there a notice period, would you have to pay a fee for getting the money back without notice, is it a fixed term deposit ?

Is it an actual account where your principal deposit is safe, or a bond-type deposit which is invested and where your principal amount could decrease in value. Is the rate of 6.50% actual or based on past performance ?

Would you have on-line banking access to your account and statements ?

What would your Aus and UK banks charge to send money between your accounts when you need to, and how would these charges impact your interest income ?

Have you checked Aus $ accounts/rates offered by the London branches of Australian banks, are they covered by the FSCS
?
Have you checked your UK bank to see if they offer UK-based Aus $ accounts and at what rate ?

Linda

The Australian and NZ deposit protection schemes are much more generous than those in the UK. You get 100% protection of the entire sum. Anyway, it's a moot point. The Aussie and Kiwi banks (which are usually Aussie owned) are run much better than those in the UK and US and had nowhere near the exposure to dodgy financial products. They are as safe as houses.

To answer your other question, at 6.5% it will be a term deposit, not a sophisticated financial product so the income will be virtually guaranteed with no risk to capital. At that level of return, I suspect it will be a five year term deposit.

My 5% term deposit in NZ is for 150 days. My 7.3% term deposit is five years, with the interest payable and accruing every three months. Both are with the Bank of New Zealand which, in turn, is owned by National Australia Bank. I have full internet access to those deposits and receively an investment statement regularly. I also have a personal banker with the BNZ who manages all my queries overnight.

On tax . . I'm non-resident in NZ now, so only get 2% deducted from the interest at source.

The onus is then on the investor to declare (or not, up to them) the income in their home jurisdiction.

As I will live in Thailand which has a tax ruling that income from overseas is only taxable if it was made in that tax year, I am structuring my income flows so that I will leave this year's interest in NZ for the year, and only draw upon it next year, thus rendering the income effectively - and legally - tax free.

Wooooooo hhooooooooooo

sabretoothtigger

Australia has massive gold reserves, they are better then us most likely

nowhere near the exposure to dodgy financial products.

Were they prevented from sub prime and securitised debt purchases or just chose not to. NAB operates yorkshire bank I think


How did you become an international playboy Bendix?

BurnerF1

Thanks for advice and comments. Got enough information now:

liland2

BurnerF1 wrote: »

I am new to this website so apologies if this is not a new thread.

My question is simple.

Can I deposit money in an Australian Bank?

If so, what are the pitfalls?
If there are no pitfalls why isn't every one doing it? They are offering 6.5%.

Internet banking and electronic transfer would make this process seem relatively easy. I currently Bank in the UK
Let me know what you know.
Cheers
BurnerF1

the exchange rate is rubbish, about 70c down ave is about 2.30 to 240 to gbp ish,and i know there are no ave at the mo:rotfl: and if this changes back fast to even 2.00$ to gbp it is moving up and down at the min at 1.70 to 1.81 in a week then back but moving on any bit of news , :eek:could cost a lot of money in forex exchnge back to gbp:)

bendix

sabretoothtigger wrote: »

Australia has massive gold reserves, they are better then us most likely




Were they prevented from sub prime and securitised debt purchases or just chose not to. NAB operates yorkshire bank I think


How did you become an international playboy Bendix?

They had much stronger balance sheets to start with, and their ledning practices during the boom years were much tighter. It's always been necessary to have around 20% deposit on mortgages in NZ for example, and that never changed. Plus they have a radical notion over there that you can only get credit cards if you have a job. Old fashioned, I know.

You're right. NAB owns YB. I think it also owns Clydesdale Bank.

I became an international playboy by refusing to live a safe and tedious life. It's been a fun ride.